On July 27, 2022, in Archer v. Grubhub, the Massachusetts Supreme Judicial Court considered whether Grubhub delivery drivers within the Commonwealth are exempt from arbitration under Section 1 of the Federal Arbitration Act (FAA). FAA Section 1 exempts “seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.” The SJC joined numerous other courts in determining such drivers are not a class of transportation workers exempt from the FAA and that the electronic arbitration agreements with class action waivers among the drivers and Grubhub are binding. The ruling reversed the Superior Court judge’s denial of Grubhub’s motion to compel arbitration.
Section 1 of the FAA Does Not Exempt Grubhub Drivers
At the heart of the case was an electronic agreement among the plaintiff drivers and Grubhub that was executed through an online portal through which the plaintiffs had to activate a hyperlink titled “Arbitration Agreement” with an option to view the text of the agreement when navigating to the signature page. The signature page required plaintiffs to acknowledge they had read, understood, and agreed to be bound by the terms of the arbitration agreement. The text of the document contained an agreement to arbitrate all disputes arising out of or relating to employment with Grubhub, including claims related to retaliation or wages. The arbitration agreement also included a class action waiver.
When plaintiffs in 2019 filed suit claiming...
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https://www.natlawreview.com/article/massachusetts-supreme-judicial-court-rev...